Bigger Homes with Gardens, Terraces the New Real Estate TrendBy Lorenzo Núñez | Tue, 12/21/2021 - 07:00
Q: What sets Yellow Block apart from its competitors in the real estate market?
A: Yellow Block specializes in the leasing, buying and selling of properties. We are experienced in the industry and offer a very personal service to our clients. Very often, you will find that many players in the industry are not very professional. We have a portfolio of clients who have trusted us for many years because of our expertise.
Q: How has the residential market evolved throughout 2020 and 2021 and how did that impact Yellow Block’s performance?
A: In the real estate sector, as in many other industries, sales were affected during the first months of the pandemic. Earlier, people were terrified to go out into the streets and set aside their plans to buy or rent a property. March, which is usually an important season for real estate sales, was when everything slowed down the most. We have now adapted to this situation. People have realized that they need to make changes in their lifestyle. As a result, a house has become not only a place to call home but also an office and even a classroom.
People are now looking to live in more spacious places and are no longer looking for locations close to their offices. They have moved away from urban environments and are looking for homes with gardens, terraces and space for every member of the family. This means that certain areas are in greater demand while there is less demand for locations in the city center. At Yellow Block, we work with many foreigners. Many expats who used to live in areas like Polanco have returned to their home countries and rents in those areas have dropped by 20-25 percent. The pandemic brought about these changes. As people are now looking for more spacious housing, developers are also starting to consider this in their designs.
Q: How has the pandemic and the economic crisis impacted the high-end real estate segments?
A: The impact has been felt mostly on rental prices, while sales prices have seen minimal variations. People who depend on rental income for their livelihood were hit with a 25 to 30 percent drop in prices. Last year, many contracts had to be renegotiated and both the tenant and the landlord had to be flexible and take into account the current market situation. Today, although rents have not yet returned to their original levels, they are gradually increasing. We have already started to notice an upturn. The price reduction now stands at 18 percent. As more people get vaccinated and we have more certainty about how the pandemic will behave, people will have more confidence to invest in real estate.
Q: What pandemic-induced changes are here to stay?
A: In terms of housing, people will now be looking for a space at home to be able to work remotely. They may not use it 24/7 but they will need it. In furnished rental apartments, having some office furniture is now a requirement. Much depends on the lifestyle of the individual. While a young, single person may not need as much space in their home, a family needs much more space. The latter customer is driving the sector.
Q: How is Yellow Block adapting to innovative technologies to facilitate the real estate sale and rental processes?
A: Incorporating technology into the sales process is no longer just an option. Whatever the sector, it is something that companies have to do. Today, we not only have to approach customers in the traditional way but also digitally.
Q: What has been the pandemic's impact on the gentrification of urban cities?
A: Displacement in recent months has been evident. There are many people from Mexico City who have moved to Acapulco, Cuernavaca, Valle de Bravo, Puerto Vallarta or Merida. Those markets are now on the rise because people continue to migrate out of the cities.
Yellow Block is a real estate agency covering Nuevo Polanco, Polanco, Zona Esmeralda and Riviera Nayarit. Its service is described as agile and personalized in advising clients how to make the best decisions in real estate.